Kumulative Dissertation, Otto-Friedrich-Universität Bamberg, 2025

This doctoral thesis explores the political economy of public investment and debt by studying the interconnection of fiscal policy institutions and macroeconomic outcomes, as well as societal perceptions thereof. My research seeks answers to three main questions: Do European fiscal frameworks facilitate or hinder sufficient public investment? How sustainable is the public debt ratio in a scarce public investment scenario? What factors affect attitudes of voters towards public investment and debt? The timely relevance of this inquiry is remarkable, given the increasingly unstable political landscape, characterized by growing polarization and deepening ideological divides.
The three chapters of this thesis highlight the need for a holistic approach to fiscal policy that integrates economic theory and empirical evidence and seeks to balance fiscal responsibility with providing solutions to inevitable structural changes. The policy implications of this research underscore that fiscal frameworks should be designed with sufficient flexibility to reduce their procyclical effect and prevent them from impeding public investment in critical infrastructure. Rather than adhering to rigid fiscal targets, it is reasonable to prioritize investments that enhance productivity and long-term economic resilience. By framing government programs in terms of their higher purpose to society, policymakers can build broader consensus on effective fiscal policy.